McBride plc (LON:MCB) shares tumbled after warning full year pre-tax profits will be 10% to 15% lower than in 2018.
In a trading update ahead of the publication of its interim results tomorrow, the manufacturer of private label products cleaning products said it had continued to see pressure on its cost base.
READ: McBride first quarter sales growth offsets growing costs
“We continue to expect the overall raw material pricing outlook to show improvements in the second half, but not to the extent anticipated in early January.
“In addition, distribution costs continue to rise beyond our previous estimates due to market rates and efficiency challenges driven by logistics capacity shortfalls and internal service gaps.
“Accordingly, although the Group continues to anticipate further good sales growth in the second half year, the board now expects full year adjusted profits before tax to be approximately 10% to 15% lower than the prior financial year.”
For the year ended 30 June 2018 adjusted pre-tax profit was £33.2 mln.
Shares in the FTSE SmallCap firm dropped 27% to 95p in morning trading.